Obama job summit: another manufacturer opts out of U.S.A.

By Warner Todd Huston

With President Obama carrying on his "jobs summit" this week blaming business for "not hiring enough workers," it is interesting to see the reaction of at least one major U.S. business to the Obama administration's actions during this economic downturn.

On November 11, David N. Farr, Chairman, CEO and President of Emerson Electric Co., announced at the Baird 2009 Industrial Conference in Chicago that President Obama has succeeded in chasing his multi-billion dollar industry right out of the U.S.A. Why? Onerous regulation, high taxes, and the over $1 trillion Obama debt should be reason enough for any business to consider shutting down U.S. facilities and seeking greener pastures overseas says Farr.

The federal government is "doing everything in [its] manpower [and] capability to destroy U.S. manufacturing," says David Farr, chairman and CEO of Emerson Electric Co., in a presentation at the Baird 2009 Industrial Conference in Chicago Ill., on Nov. 11. In comments reported by Bloomberg, Farr added that companies will continue adding jobs in China and India because they are "places where people want the products and where the governments welcome you to actually do something. I am not going to hire anybody in the United States. I'm moving. They are doing everything possible to destroy jobs."

During his slide show on the state of Emerson's business, Farr noted that the "unprecedented job loss experienced in this recession will result in a much slower U.S. recovery" and the federal government is making matters worse. The slide reports that the job loss this time is by many magnitudes worse than previous recessions. Noted are job losses from several recessions: 1980 with 1 million jobs lost; 1982 with 2.8 million; 1990 with 1.5 million; 2001 with 2.7 million. Finally Farr notes that we've seen a whopping 7.3 million lost thus far (and climbing) in this 2008-2009-2010 recession.

And the culprit? Obama's government interference. Farr's presentation noted the following:

Our Government at Work to Help the U.S. Economy Grow:

• $1.41T Deficit 10% of GDP
  
  
• $12T of Government Debt Going to $20+T in 10 yrs
  
  
• Print more money — "Quantitative Easing"
  
  
• Non-Targeted $800B Stimulus
  
  
• Wall Street & Car Bailouts
  
  
• Cap & Tax Legislation?
  
  
• Government Healthcare takeover: $1+T
  
  
• Taxes and Regulations (increasing)
  
  
• Lack of U.S. $ Support
  
  

Emerson reported that sales for the 2009 fiscal year fell to $21 billion, down from $25 billion in 2008. An operating profit of $3.2 billion was earned in 2009.

Another key to Emerson's decision to continue its overseas development is the rapid growth of its emerging markets. 2009 sales to emerging markets rose at a quick pace reaching $6.7 billion and is projected to reach $12 billion by 2014.

Between 1999 and 2009 "73 percent of growth is from emerging markets!" Farr exclaims. "More than 60 percent of our growth is expected to come from emerging markets over the next five years so Emerson will continue to invest in these key markets."

Obama's government with its discouraging interference in the market and the deleterious effects that has had on the national business climate all tends to make foreign shores seem very attractive for American business. At a time when the U.S. is losing almost as many jobs as the last four recessions combined Obama is making the business climate much worse with his policies. But, this shouldn't surprise anyone. Barack Obama is a good ol' Illinois pol, after all. And Illinois ranks among the worst business climates in the country.

For more information on Emerson:

www.emerson.com/

Baird 2009 Industrial Conference

November 11, 2009

Chicago, Illinois

Presenter: David N. Farr, Chairman, CEO and President

View Mr. Farr's presentation (PDF)

(Cross posted at BigGovernment.com)

© Warner Todd Huston